Artificial Intelligence (AI) is increasingly shaping how entrepreneurs in developing countries start, manage and grow their businesses.
That is the finding of the new UN Trade and Development (UNCTAD) publication Artificial Intelligence Unleashed: Transforming The Entrepreneurial Scene In Developing Nations.
The report said that micro, small and medium enterprises and start-ups “have embarked on using AI-powered tools across a wide range of activities, from marketing and customer service to logistics, finance and product design”.
It added that large language models are emerging as foundational building blocks that allow smaller firms to adopt AI quickly and at a relatively low cost.
The publication also said, however, that AI adoption remains uneven, as many entrepreneurs reported a limited understanding of the business value of AI. This included what problems it can solve, how it fits into long-term business strategy and how to implement it step by step.
A lack of managerial understanding and technical talent slows AI implementation, especially for smaller firms with limited resources, UNCTAD reported.
Arlette Verploegh Chabot, who leads UNCTAD work on entrepreneurship development, said: “AI can be a powerful tool for entrepreneurs, but its benefits are not automatic.
“Supportive ecosystems, the right skills and clear rules are essential to help entrepreneurs understand where AI adds value and how to integrate it into their businesses in a meaningful way.”
The report said that if entrepreneurs wanted to adopt AI more effectively and efficiently, they should focus on skills development, access to data and finance, innovation-friendly regulation, and stronger entrepreneurial ecosystems. (SC/PR)
